The digital asset market has witnessed impressive activity, as the new XRP ETFs absorbed nearly 80 million tokens following their launch. Recent data provided by the analytics platform XRP Insights confirms that this massive capital inflow raised total assets under management to $778 million. This movement occurs at a critical moment, outperforming the initial performance of other rival products and defying the trend of outflows in Bitcoin.
The breakdown of figures reveals a voracious appetite from institutional investors for these financial products recently regulated in the United States. Specifically, Grayscale’s GXRP fund managed to capture $67.4 million, while Franklin Templeton’s product attracted another $62.6 million during its opening on November 24. Likewise, there are currently four active funds, where Canary’s product leads with $331 million in cumulative net inflows. On the other hand, institutional mania will continue, as the launch of the 21Shares fund is speculated on Cboe BZX by the end of this month.
Can Institutional Buying Pressure Break the Technical Resistance of $2.20?
The importance of this event lies in how demand for exchange-traded funds directly pressures the circulating supply of the underlying asset on exchanges. Chad Steingraber, a renowned advocate for the asset, noted with optimism that each share is equivalent to between 10 and 20 XRP tokens, which significantly impacts the real price. Additionally, if capital inflows remain constant over time, they could generate a volume surge driven by the fear of missing out. Thus, the funds would become key influencers of market dynamics in the long term, validating the project’s financial structure.
Regarding technical analysis, the price has reacted positively, recovering 5% weekly from lows of $1.90 to encounter resistance. Currently, the four-hour chart shows the formation of a bullish flag, suggesting a possible breakout towards the value gap located between $2.35 and $2.45 per token. However, technical indicators present a mixed scenario, as the asset still trades below the 50, 100, and 200-period exponential moving averages. Therefore, the market remains undecided regarding the directional bias immediately despite the relative strength shown by the RSI.
The future scenario depends entirely on the bulls’ ability to sustain the $2.20 level in the coming trading sessions. If buyers fail to consolidate this critical zone, the likelihood of a retracement towards $2.10 increases, where large buying liquidity is concentrated. Nevertheless, continued interest in cryptocurrencies through institutional vehicles like the new XRP ETFs keeps the hope of a lasting trend reversal alive.
